Bulgaria Kicks off Insolvency Proceedings Vs Matador Prime

In a fresh twist to the saga of Matador Prime’s Bulgaria-licensed brokerage arm, the Bulgarian Financial Supervision Commission (FSC) has triggered insolvency proceedings against the company based on a decision set by the Sofia City Court.

In the case at hand, insolvency proceedings were opened on March 19, 2019, against Matador Prime, which procured a MiFID license in Bulgaria back in 2015 to passport its services across the European Union.

The institutional-oriented group operates as a Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker and asset management firm with offices in Bulgaria, Spain, and the US. Besides online FX and CFDs trading, the brokerage offers corporate bonds, equity stocks and it focuses on portfolio management and investment services.

As we reported in October 2018, the Bulgarian watchdog has suspended the investment license of Matador Prime, which was also written off from the Commercial Register.

What’s next?

The court said it had appointed Alexander Kostadinov as a temporary assignee, specifying that creditors have until June 19 to file their claims. In the future, the creditors have the power to elect a new insolvency administrator after the approval of the list of accepted claims, i.e., upon the participation of all creditors.

In addition, there is an opportunity for creditors to propose restructuring plans or rescue the debtor’s business if the action is anticipated to have a positive effect on the recovery of their debts.

Meanwhile, claims of Matador Prime’s clients are deemed to have been filed the court says, and will be added to the list of other accepted claims, which is set to be prepared by the assignee.

As a regulated entity, Matador Prime is a member of Bulgaria's Investor Compensation Fund, which covers up to 90 percent of the due sum (with a maximum of €20.000 per claim) in case the company goes bankrupt.